Bankruptcy

Fisker Getting its Ass Sued by Angry Investors

And we should be surprised because?

Fisker the automaker is no more, but its now former investors are still very much alive. To say they’re not happy would be an understatement. According to a report coming from Automotive News, an investor group called Atlas Capital Management is claiming that Fisker Automotive misled them about its financial health in regards to problems with a government loan as well as failing to disclose a safety recall in 2011.

If the investor had known the truth regarding these issues, "it would not have purchased or otherwise acquired Fisker securities, or...would not have done so at the artificially inflated prices which it paid." Fisker filed for bankruptcy on November 22, 2013, and this lawsuit was recently filed on December 27. Basically, Atlas is angry because, according to them, "Fisker continued to raise capital while deliberately issuing materially false and misleading statements." Atlas also claims that Fisker hid information regarding the recall of 239 Karma sedans in late 2011 – until a day after a round of financing closed.

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